Isis Pharmaceuticals (ISIS) Is Today's Unusual Social Activity Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Isis Pharmaceuticals as such a stock due to the following factors:
- ISIS has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 25.16 mentions/day.
- ISIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $180.5 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on ISIS:
Isis Pharmaceuticals, Inc. is engaged in the discovery and development of antisense drugs using novel drug discovery platform. Currently there are 3 analysts that rate Isis Pharmaceuticals a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Isis Pharmaceuticals has been 3.4 million shares per day over the past 30 days. Isis has a market cap of $8.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.31 and a short float of 15.1% with 5.58 days to cover. Shares are up 9.1% year-to-date as of the close of trading on Thursday.
Analysis:
rates Isis Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has decreased by 8.6% when compared to the same quarter one year ago, dropping from -$24.57 million to -$26.68 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ISIS PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $1.94 million or 97.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- ISIS PHARMACEUTICALS INC's earnings per share declined by 9.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ISIS PHARMACEUTICALS INC continued to lose money by earning -$0.53 versus -$0.65 in the prior year. For the next year, the market is expecting a contraction of 20.8% in earnings (-$0.64 versus -$0.53).
- Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- You can view the full Isis Pharmaceuticals Ratings Report.
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